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CIRO CIRE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Securities, managed products, mutual funds and other investments19%- Pooled products
- Equities
- Other investments
- Managed products
- Mutual funds
- Exchange-traded funds
- Fixed income investment considerations
- Market indices
- Fixed income securities and products
- Asset classes
- Managed product investment considerations
- Equity investment considerations
Topic 2: Conflicts of interest and ethics15%- Ethics and regulatory rules
- Ethical principles and standards of conduct
- Cybersecurity and confidential information
- Ethical and legal responsibilities to clients
- Positions of influence
- Outside activities of Approved Persons
- Information barriers and restricted lists
- Client confidentiality
- Managing conflicts of interest
- CIRO and other ethical standards
- Personal financial dealings with clients
- Conflict identification, avoidance, addressing and disclosure
Topic 3: Prospective client relationships10%- Third parties and professional advisers
- Institutional client qualification
- Costs, fees, turnover and taxes
- Account agreements and welcome documentation
- Retail client information and risk profile
- Accredited investors and exemptions
- Client recordkeeping
- Retail and institutional clients
- Investment Dealer onboarding process
- Client relationship model
Topic 4: Overview of Canadian securities regulatory framework10%- Canadian Investor Protection Fund
- Anti-money laundering requirements
- Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators
- Clearing agencies
- Other investment industry regulators and agencies
- Confidentiality, privacy, anti-spam and shareholder rights legislation
- Investment Dealer registration and individual approval requirements
- Marketplaces and trading venues
- Criminal Code and financial crime
- Bank Act and Bankruptcy and Insolvency Act
- Role and authority of the Canadian Investment Regulatory Organization
Topic 5: Client complaint handling and reporting5%- Investment Dealer obligations to clients
- Client recourse options
- Investment Dealer complaint reporting obligations
- Complaint policies, procedures and recordkeeping
- Client issues and potential liability
- CIRO and provincial regulator roles in complaint handling
- Settlement agreements with clients
Topic 6: Market and company analysis8%- Company performance analysis
- Economic information and indicators
- Basic economic theories
- Company regulation, disclosure and investor rights
- Macroeconomic factors and policies
- Macroeconomic effects on financial markets
- Industry performance analysis
- Technical and statistical analysis tools
- Market theories and stock market behaviour
Topic 7: Derivatives5%- Prohibited derivative trading practices
- Derivative account administration
- Listed and over-the-counter derivatives markets
- Derivative trading strategies
- Options
- Transactional elements of futures and options
- Uses of derivatives
- Futures, forwards, swaps and contracts for difference
Topic 8: Market integrity, trade execution and settlement12%- Gatekeeping for manipulative and deceptive practices
- Investment banking, research and corporate finance
- Derivative trading agreements
- Reporting obligations
- UMIR gatekeeping obligations
- Order entry, trade processing, settlement and delivery
- Margin requirements
- Order types
- Order variations, cancellations and corrections
- Order confirmation requirements
- Account types
- Universal Market Integrity Rules
Topic 9: Scope of client relationships15%- Institutional client sophistication and suitability exemptions
- Know-your-product requirements
- Investment management styles and strategies
- Institutional Investment Dealer services
- Trust, agency and fiduciary duty
- Investment Representative role and client service
- Investment performance benchmarks
- Clients residing in the United States and other foreign jurisdictions
- Retail Investment Dealer services
- Account appropriateness
- Account appropriateness versus suitability
- Escalation to subject matter experts
- Relationship disclosure
- Suitability exemptions
- Client suitability determination
- Product due diligence
- Registered Representative role and client service

CIRO Canadian Investment Regulatory Sample Questions:

1. Which of the following statements best describes the benefit of holding a cumulative preferred share?

A) It allows companies to accumulate redemption rights over a set time
B) It accumulates voting rights regardless of dividend payment status
C) It allows unpaid dividends to accumulate and be paid with priority
D) It accumulates interest on missed dividends until they are paid


2. How are new Canadian government bonds typically issued to the market?

A) Through direct sales to retail investors at a posted price
B) By private placement agreements with institutional brokers
C) By auction where Investment Dealers bid based on the yield
D) At a set rate offered to institutions with the highest bids


3. Which of the following best describes the key difference between a call option and a put option in an options contract?

A) A call option gives the holder the right to sell an asset; a put option allows buying at market price
B) A call option lets the holder sell, and a put option lets the holder buy, an asset at a set price
C) A call option buys at a fixed price; a put option gives the holder rights to future dividends
D) A call option allows the holder to buy, while a put option allows the holder to sell, at a fixed price


4. What is the best course of action if an Investment Representative (IR) discovers a colleague engaging in what appears to be unethical behaviour?

A) Confront the colleague privately to let them know
B) Report it immediately to the regulatory authorities
C) Report the activity to the appropriate firm authority
D) Ignore the behaviour to avoid potential conflict


5. Which of the following best defines a retail client under CIRO rules?

A) A client that must meet strict regulatory criteria to qualify as an investor
B) A government-regulated institution with waived know-your-client (KYC) requirements
C) An entity that requires full compliance with suitability and disclosure obligations
D) An entity registered under securities law as a regulated dealer


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: C

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